Orbotech: Strong Q2 Results; PCB Segment Recovers

 Orbotech: Strong Q2 Results; PCB Segment Recovers

Orbotech Ltd. has announced its consolidated financial results for the second quarter and six months ended June 30, 2014. Revenues for the second quarter of 2014 totaled $113.2 million, compared to $104.8 million in the first quarter of 2014 and $108.8 million in the second quarter of 2013. GAAP net income for the second quarter of 2014 was $8.6 million, or $0.20 per share (diluted), compared to GAAP net income of $6.3 million, or $0.15 per share (diluted) for the first quarter of 2014 and GAAP net income of $10.5 million, or $0.24 per share (diluted), in the second quarter of 2013. Commenting on the results, Asher Levy, CEO, said, “We are pleased to report strong results for the second quarter. Our PCB business picked up as expected and our FPD business enjoyed another quarter of solid orders as we recorded a cumulative total of $130 million in bookings for the first half of 2014. Our service revenues continue to strengthen.” Levy continued, “Across the company, we continue to benefit from our industry leadership, with customers increasingly appreciating our commitment to address their needs as they prepare to build capacity for the expected next generation of smart devices and for the next wave of investment in production facilities for small to mid, ultra high definition displays.” Commenting on the previously-announced agreement to acquire SPTS Technologies Group Limited (SPTS), Levy said, “The acquisition of SPTS is part of our strategy to expand into Advanced Packaging. This significant acquisition represents a natural and strategic extension of our business into an adjacent high growth industry. We expect, through this acquisition, to combine the extensive know-how and core assets of both companies and to enhance Orbotech’s portfolio and industry leadership.” Revenues for the first six months of 2014 totaled $218.0 million, compared to $204.3 million recorded in the first six months of 2013. GAAP net income for the first six months of 2014 was $14.9 million, or $0.35 per share (diluted), compared to GAAP net income of $15.5 million, or $0.36 per share (diluted), in the first six months of 2013. Non-GAAP net income for the second quarter of 2014 was $10.5 million, or $0.25 per share (diluted), compared to non-GAAP net income of $12.4 million, or $0.29 per share (diluted), in the second quarter of 2013. Non-GAAP net income for the first six months of 2014 was $18.7 million, or $0.44 per share (diluted), compared to non-GAAP net income of $19.3 million, or $0.44 per share (diluted), in the first six months of 2013. A reconciliation of each of the Company’s non-GAAP measures to the comparable GAAP measure is included at the end of this press release. In the company’s Production Solutions for Electronics Industry segment, sales of equipment to the PCB industry were $48.5 million in the second quarter of 2014, compared to $41.5 million in the first quarter of 2014 and $51.1 million in the second quarter of 2013; and sales of equipment to the FPD industry were $18.4 million in the second quarter of 2014, compared to $23.1 million in the first quarter of 2014 and $20.2 million in the second quarter of 2013. In the Solar Energy segment, sales were $5.2 million in the second quarter of 2014, compared to $1.8 million in the first quarter of 2014 and $0 in the second quarter of 2013. In the company’s Recognition Software segment, sales were $1.2 million in the second quarter of 2014, compared to $1.4 million in the first quarter of 2014 and $1.7 million in the second quarter of 2013. In addition, service revenue for the second quarter of 2014 was a record $39.9 million, compared to $37.0 million in the first quarter of 2014, and $35.8 million in the second quarter, of 2013. -